USD/JPY is capped by 78.42/45

A zone at 78.15/77.99 proved to be durable enough to negate bearish activity and send the price back up to 78.42/45. However, from there the path of least resistance is to the downside, implying that 77.56/37 is still likely to be reached. An apex of a falling wedge is two months ahead, thereby a breakout and a consequent robust move is expected to take place within this period.

Perception of USD/JPY by the market is largely unchanged since yesterday, as investors generally foresee an emergence of a surge, being that 73% of traders are long and 27% are short on the pair. Additionally, the share of buy orders amounting to 82% reinforces bullish bias.